- 01Subsidy by system size
- 02Why 3 kW is the sweet spot
- 03What the subsidy is really worth: net cost
- 04How and when the money is paid
- 05Conditions attached to the subsidy
- 06Common subsidy calculation mistakes
- 07What happens after March 2027?
| System capacity | Central subsidy (CFA) | UP state top-up | Total in UP |
|---|---|---|---|
| 1 kW | ₹30,000 | ₹15,000 | ₹45,000 |
| 2 kW | ₹60,000 | ₹30,000 | ₹90,000 |
| 3 kW | ₹78,000 | ₹30,000 | ₹1,08,000 |
| 4 kW,5 kW,6 kW+ | ₹78,000 | ₹30,000 | ₹1,08,000 (no increase) |
The central figures apply all over India. The state column is Uttar Pradesh's additional contribution; Haryana pays ₹30,000 at 2 kW as well. Bihar, Rajasthan, Delhi and other states have their own arrangements — some pay nothing extra, some pay through the DISCOM, and Delhi has announced a separate zero-upfront model for 3 kW systems. Check the state nodal agency before you calculate.
Why 3 kW is the sweet spot
The central subsidy is capped at ₹78,000, which is reached at 3 kW. Every kW beyond that is paid fully by you. That is why the vast majority of PM Surya Ghar installations are 3 kW, and why vendors quote 3 kW as the default.
If you need 5 kW — two ACs, a pump, a larger family — the economics still work, because the per-kW cost of the extra capacity falls once inverter, structure and DISCOM costs are shared. But do not expect the subsidy to scale with it.
What the subsidy is really worth
Indicative Uttar Pradesh market prices for on-grid DCR systems in 2026:
| 1 kW | 2 kW | 3 kW | |
|---|---|---|---|
| Installed cost (range) | ₹60,000–70,000 | ₹1,10,000–1,40,000 | ₹1,50,000–1,90,000 |
| Subsidy (UP) | ₹45,000 | ₹90,000 | ₹1,08,000 |
| Net cost to you | ~₹20,000–25,000 | ~₹40,000–50,000 | ~₹70,000–75,000 |
| Generation per month | 120–150 units | 240–300 units | 360–450 units |
| Simple payback | ~3 years | 2–3 years | 2–2.5 years |
Prices vary with module brand (540 W vs 580 W), inverter brand, structure height and city. Treat these as a sanity check for the quotation you receive, not as a quotation.
How and when the money is paid
The subsidy is not a discount on the invoice. You pay the vendor the full amount (or take a loan), the system gets commissioned, and the government transfers the subsidy into your bank account afterwards.
The central subsidy comes first, typically 7–15 days after you click Redeem Subsidy and your bank account is verified. The state top-up follows around 15 days later. There is nothing extra to file for the state portion.
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Guideline: 30 days from bank verification.
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Loan customers: since August 2026 the subsidy is credited to the loan account, not your savings account. It reduces your outstanding principal.
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Who clicks Redeem: you do, from your consumer login. Vendors cannot do it for you.
Conditions attached to the subsidy
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DCR modules only. The vendor must issue you a B2C DCR certificate listing every panel serial installed on your roof. No certificate, no subsidy.
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On-grid with net meter. Off-grid and battery-only systems are not eligible. Hybrid systems qualify for the solar portion when connected through a net meter.
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Capacity must not fall short of the sanctioned proposal. Installing 3.3 kW of modules on a 3 kW application is fine; installing 2.7 kW is not. MNRE allows ±10% DC/AC tolerance for net-metering purposes since 29 July 2026, but a customer who pays for 5 kW should receive 5 kW.
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Name match across electricity bill, Aadhaar, PAN and bank passbook.
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Bank proof must be a passbook first page or cancelled cheque bearing the bank's stamp and signature.
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PMSGMBY logo on modules, inverter and DB — the vendor's responsibility, at the vendor's cost.
Common subsidy calculation mistakes
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Assuming 5 kW gets ₹1,30,000. It does not — the central ceiling is ₹78,000.
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Adding a state top-up your state does not pay. Confirm your state's figure first.
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Treating the quotation as net of subsidy. Ask the vendor explicitly: “Is this the amount I pay you, before subsidy?”
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Forgetting net-meter and DISCOM charges. Some DISCOMs charge separately for the bi-directional meter and inspection.
What happens after March 2027?
The scheme deadline is 31 March 2027. With about 53% of the target achieved by August 2026, the government has not announced whether the subsidy continues, reduces or ends.
The prudent approach is to apply and commission before the deadline — a file stuck in inspection on 1 April 2027 is an avoidable risk.
Headsup B2B supplies DCR-certified modules, inverters and structures to PM Surya Ghar vendors from its Patna and Dausa hubs, and arranges installation through empanelled partners. Ask for a written quotation showing gross cost, subsidy and net cost separately.
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